1.1                          A bill for an act 
  1.2             relating to housing; housing finance agency; 
  1.3             authorizing agency to make grants or loans under the 
  1.4             community rehabilitation fund account to for-profit 
  1.5             organizations; amending Minnesota Statutes 1998, 
  1.6             section 462A.206, subdivision 4; Minnesota Statutes 
  1.7             1999 Supplement, section 462A.206, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.10  462A.206, subdivision 2, is amended to read: 
  1.11     Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
  1.12  loans to cities or, nonprofit, or for-profit organizations for 
  1.13  the purposes of construction, acquisition, rehabilitation, 
  1.14  demolition, permanent financing, refinancing, construction 
  1.15  financing, gap financing of single housing for homeownership, or 
  1.16  full cycle home ownership services, as defined in section 
  1.17  462A.209, subdivision 2.  Gap financing is financing for the 
  1.18  difference between the cost of the improvement of the blighted 
  1.19  property, including acquisition, demolition, rehabilitation, and 
  1.20  construction, and the market value of the property upon sale.  
  1.21  The agency shall take into account the amount of money that the 
  1.22  city or, nonprofit, or for-profit organization leverages from 
  1.23  other sources in awarding grants and loans.  The agency shall 
  1.24  also consider the extent to which the grant or loan recipient 
  1.25  will coordinate use of the funds with its other housing-related 
  1.26  efforts or other housing-related efforts in the recipient's 
  2.1   geographic area.  In determining whether to award a grant or 
  2.2   loan, the agency shall seek to maximize the recycling of state 
  2.3   resources wherever appropriate.  The city or, nonprofit, or 
  2.4   for-profit organization must indicate in its application how the 
  2.5   proposed project is consistent with the consolidated housing 
  2.6   plan.  Not less than ten days before submitting its application 
  2.7   to the agency, a nonprofit or for-profit organization must 
  2.8   notify the city in which the project will be located of its 
  2.9   intent to apply for funds.  The city may submit to the agency 
  2.10  its written comments on the nonprofit or for-profit 
  2.11  organization's application and the agency shall consider the 
  2.12  city's comments in reviewing the application.  Cities and, 
  2.13  nonprofit, and for-profit organizations may use the grants and 
  2.14  loans to establish revolving loan funds and to provide grants 
  2.15  and loans to eligible mortgagors.  The city or, nonprofit, or 
  2.16  for-profit organization may determine the terms and conditions 
  2.17  of the grants and loans.  An agency loan may only be used by a 
  2.18  city or, nonprofit, or for-profit organization to make loans. 
  2.19     Sec. 2.  Minnesota Statutes 1998, section 462A.206, 
  2.20  subdivision 4, is amended to read: 
  2.21     Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
  2.22  resources, a city or, a nonprofit, or a for-profit organization 
  2.23  located in a metropolitan statistical area must designate 
  2.24  neighborhoods within which the grants or loans may be used, and 
  2.25  a city or, nonprofit, or for-profit organization located outside 
  2.26  of a metropolitan statistical area must designate a geographic 
  2.27  area within which the grants or loans may be used.